Mutual Fund Essays (Examples)

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The Risks and Benefits of Investments

Words: 657 Length: 2 Pages Document Type: Essay Paper #: 79693617

Question One
One of the key advantages that mutual funds offer in comparison to company stocks is diversification. In particular, mutual funds will offer the investor diversification by means of the coverage of a range of stocks. The inference of this is that a company stock bears more risk in comparison to a mutual fund. Basically, when an investor invests and owns one company stock, then it implies that he bears the risk of the company, which may not be applicable in other corporations within the similar market sector. This means that if the firm goes through an adverse experience, for instance a manufacturing center breaking down, then the investor experiences a loss (Allaria, 2016).
As a result, investment in a mutual fund means that the investor has a number of different assets within the portfolio. This curtails the investor’s general investment risk as it facilitates spreading the risk faced…… [Read More]

References

Allaria, J. (2016). Why would a person choose a mutual fund over an individual stock? Investopedia. Retrieved 3 October 2017 from: http://www.investopedia.com/ask/answers/05/062305.asp\\\\

Smith, J., Smith, R. L., Smith, R., & Bliss, R. (2011). Entrepreneurial finance: strategy, valuation, and deal structure. Stanford University Press.

Zacks. (2017). What Advantages Do Mutual Funds Offer Compared to Buying Particular Stocks? Retrieved 3 October 2017 from: http://finance.zacks.com/advantages-mutual-funds-offer-compared-buying-particular-stocks-5069.html





 


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Hedge Funds Suitable for Retail

Words: 2663 Length: 6 Pages Document Type: Essay Paper #: 93809627

The investors have responsibility to invest based on the social needs. The retail investor, can for example is thus a person who buys socially responsible unit trusts or mutual funds. Actually the investment that is being touted as responsible investment is the work of socially beneficial institution like pension funds, and some charitable foundations. Normally the institutional investors do not enter the socially responsible investment scenario. Of late however the new approaches to fund investment by the institutions have bordered on social concerns. The issues of institutional investment are more complicated and diverse than the retail funds. (Sparkes, 2002, p. 117)

There are many other investment opportunities available to the retail investor without incurring the risk but at the same time gaining efficiency in value without hedging. The retail investors thus are better off in those segments and hedging must not be opened to them. There are ample other investment…… [Read More]

References

Barnes, Ryan. 2007. Hedge Funds Go Retail. Investopiedia Online,

 http://www.investopedia.com/articles/mutualfund/07/mutual_fund_retail.asp#axzz1naDnVsEo  accessed 4 March 2012.

Bogle, John C. 1999. Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor. Wiley: New York.

Brouwer, Gordon De. 2001. Hedge Funds in Emerging Markets. Cambridge University Press: Cambridge, England.
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Hedge Funds Suitable for Retail

Words: 2447 Length: 7 Pages Document Type: Essay Paper #: 43461532

Unfortunately, determining which fund to go with for a retail investor is difficult, as there are many unscrupulous fund managers who might seek to take advantage of the fact that they are playing with other people's money and making (at least) the management fee. This can lead even scrupulous hedge fund managers to take unnecessary risks.

The danger of hedge funds being mismanaged truly cannot be overstated. For example, Bernie Madoff ran a large exclusive fund and while it was a Ponzi scheme, which while illegal and with "fantasy returns," that sophisticated investors most certainly should have realized were not realistic, Madoff continued to be able to bring in investors. However, Madoff's investors were all relatively financially sophisticated people with huge assets. While his scheme caused them financial damage, the damage was manageable and it was confined to a group of people with assets that greatly outstripped those of the…… [Read More]

References

Agarwal, V 2009. "Hedge funds for retail investors? An examination of mutual funds," Journal

of Financial and Quantitative Analysis, vol. 44, no. 2, pp. 273-305. Available from:

. [27 February 2012].

Gross, P 2012. Narayan Naik looks at hedge funds and investment portfolios. Available from:
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Hedge Funds Are Funds That Can Include

Words: 1282 Length: 3 Pages Document Type: Essay Paper #: 99667854

Hedge funds are funds that can include short and long positions, trade options or bonds, purchase and sell undervalued securities, and use arbitrage and invest in nearly every opportunity in any market with predictable impressive gains at minimized risks. The basic and main objective of many hedge funds is to lessen volatility and risk while trying to maintain capital and provide positive returns within all market conditions. Hedge fund strategies differ hugely because of the current volatility and expectation of corrections in the overheated stock markets. Notably, there are around 14 different investment strategies that are used by hedge funds with each of them providing varying degrees of return and risk. As a result, understanding the differences between these hedge fund strategies is critical because they provide different investment returns ("What is a Hedge Fund?" n.d.). Nonetheless, certain strategies that are not connected to equity markets are able to provide…… [Read More]

References:

Barclay Hedge (n.d.), Understanding Relative-Value Arbitrage, Barclay Hedge -- Alternative

Investment Databases, viewed 7 June 2012,

Barufaldi, D (n.d.), Hedge Funds: Strategies, Investopedia, viewed 7 June 2012,

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Hedge Fund Management Technique the

Words: 9602 Length: 35 Pages Document Type: Essay Paper #: 55417163



2.3: Theme I: This study's first theme defines hedge funds and presents a synopsis of their history.

2.: Theme 2: Ways hedge funds compare to mutual funds are noted in this section, this study's second theme.

2.5: Theme 3: segment denotes techniques hedge funds utilise in investing.

2.6: Theme : A number of ways rising and falling markets impact hedge funds, this section's theme links to the thesis statement for this thesis/Capstone.

2.7: Analysis: The analysis section presents a number of pertinent points retrieved from the reviewed literature.

CHAPTER III: DISCUSSION; CONCLUSIONS; RECOMMENDATIONS

3.1: Introduction: This final chapter's introduction reviews the original study aim and objectives presented at the start of this thesis/Capstone, relating to hedge funds techniques. This section also recounts this study's thesis statement.

3.2: Discussion: During this segment, this researcher relates final considerations regarding hedge funds techniques, cross-referencing several points the reviewed literature noted. This researcher also…… [Read More]

4. The Investment Advisers Act.

The Securities Act of 1933, (SEC):

…oversees the mutual fund industry's compliance with specific regulations, including, the Internal Revenue Code which set additional requirements regarding a fund's portfolio diversification and its distribution of earnings, and the National Association of Securities Dealers, Inc. (NASD) oversees most mutual fund advertisements and other sales materials. In addition, mutual funds must have directors who are responsible for extensive oversight of the fund's policies and procedures. For virtually all funds, at least a majority of their directors must be independent from the fund's management.
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Rise of the Hedge Fund

Words: 1740 Length: 6 Pages Document Type: Essay Paper #: 36879215

" (Grassi, 2007)

III. HEDGE FUNDS REBOUND FROM SUBPRIME SUMMER in SEPTEMBER

It is related in an October 10, 2007 report that Hedge funds "rebounded nicely from the summer of subprime in September, posting one of their months in a decade." (FINalternatives, 2007) Hedge funds rose 3.27% in September in what is stated to be "the largest increase in four years, and the second largest in eight." (FINalternatives, 2007) the gains are also stated to be broad-based gains. The problem is however, that there is simply not a historical track-record of hedge fund returns to utilize in attempting to predict if these gains are likely to remain or be replaced by losses even greater than over the summer of this year. A discussion of the Financial Economists Roundtable's annual meeting reports the rapid growth of hedge funds in the last decade. The Financial Economists Roundtable is comprised of a group…… [Read More]

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Hedge Fund Regulation the Purpose

Words: 4816 Length: 18 Pages Document Type: Essay Paper #: 47922899

In the first-round survey, a majority of investors cited diversification as their main objective in allocating to hedge funds. Among the second-round interviewees who were planning to increase their target allocations by 10% or more, half named diversification as the motivating factor. Among the approximately one in ten who were planning to decrease allocations by at least 10%, concern with a lack of transparency was the most frequently cited reason.

(4) Institutions are thinking and acting as long-term investors. While almost a quarter of second-round interviewees said they have liquidated some investments or plan to do so, overall the investors surveyed showed no inclination toward a long-term exodus from hedge funds. This is understandable, considering that 93% of all interviewees said they make hedge fund investments with a time horizon of at least three years, and more than half have a time horizon of five years or more.

(5) Investors…… [Read More]

Bibliography

Cumming, Douglas and Dai, Na (2008) Capital Flows and Hedge Fund Regulation. SSRN Journal. Online available at: http://ssrn.com/abstract=1026683.

Dawn, Ralph and Young, Chuck (2009) Testimony before the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises before the House of Representatives (2009) Orice M. Williams, Director of the Financial Markets and Community Investment. GAO Report. Online available at:  http://www.gao.gov/htext/d09677t.html 

Glovin and Scheer (2008) Madoff Charged in $50 Billion Fraud at Advisory Firm. Bloomberg.com. Online.

Hedge Funds Under the Microscope: Examining Institutional Commitment in Challenging Times. Greenwich Associates. Online available at: http://cdn.rsys1.net/ig.rsys1.net/responsysimages/seic/__RS_CP__/SEI_ HFs%20Under%20Microscope_Overview.pdf
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Northwestern Mutual Life Insurance Company

Words: 8235 Length: 30 Pages Document Type: Essay Paper #: 44483757

Northwestern Mutual Life Insurance Co

Insurance business in modern day has adopted a differential approach to dealing with policy issues and consumer behavior yet some companies like Northwestern Mutual Life retain their original course of actions with clear mission and core values to provide exceptional service to their consumers. The following report is an analysis of such exceptional quality and distinguishable positioning of the company.

Whether one is a business entity, a healthcare organization or an individual living in society, the uncertain encompass great risks. As people are cautionary in nature, they often tend to adopt trends or behaviors that prevent them from becoming prey to such risks. To eliminate risks civilized society such as ours has developed a complex financial system that pays for the damages incur should there be accidents or sudden deaths. Life insurance is thus all about saving money for loved ones in case of sudden…… [Read More]

References

Leslie Haggin Geary and Michael J. Powe Tables compiled by Tara Kalwarski and Derek Manson Additional reporting by Megan Johnsto, Corporate America's Best Benefits., Money, 12-01-2001, pp 140+.

Fortune® "Most Admired" Corporation in the life and health insurance industry, 1983-1995, 1997-2001 (industry not rated in 1996).

Northwestern Mutual Life Insurance Official Website, accessed on 6-4-03 at http://www.nmfn.com/tn/aboutnet -- pg_nm_intro

Author not available, American Dream or Financial Fantasy, Northwestern Mutual: News and Media: Studies and Reports. 2003.
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Exchange Traded Funds

Words: 3535 Length: 10 Pages Document Type: Essay Paper #: 71248148

ETFs

The first step is setting up an investment account is to understand the client. Everything flows from this. The client profile is developed through an extensive interview process, wherein the advisor seeks to gain an understanding of the client's personal circumstances, current and envisioned financial situation, risk tolerance and investment knowledge (Anthony, 2011). With this information, the financial advisor can then build a profile based on the portfolio objectives and risk constraints. For this portfolio, the focus will be on exchange-traded funds. The objective of this exercise is to build the optimal portfolio for the client, taking into account the client's personal circumstances and the variety of funds that are available to build the portfolio.

Client Profile

The client is a male, late 20s, with a long-term girlfriend. They have no current plans for children. They are American, living and working in Miami, and therefore are eligible to purchase…… [Read More]

References

Anthony, M. (2011). The evolving client profile. Financial Advisor Magazine. Retrieved November 30, 2013 from http://www.fa-mag.com/news/the-evolving-client-profile-7650.html

Baidu 2012 Annual Report. Retrieved November 30, 2013 from  http://media.corporate-ir.net/media_files/IROL/18/188488/BaiduAR2012.pdf 

BIO. (2013) What is biotechnology? Biotechnology Industry Organization. Retrieved November 30, 2013 from  http://www.bio.org/node/517 

CBO. (2013). Economic projections. Congressional Budget Office. Retrieved November 30, 2013 from http://www.cbo.gov/topics/economy/economic-projections
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Dimensional Fund Advisors Analysis Philosophy of Dfa

Words: 1703 Length: 5 Pages Document Type: Essay Paper #: 82010292

Dimensional Fund Advisors Analysis

Philosophy of DFA

Dimensional Fund Advisors (DFA) was an investment firm based in Santa Monica, California that was dedicated to the principle that the stock market was "efficient," therefore implying that while over any given period some investors by luck would outperform the market and others would underperform, no one had the ability to consistently pick stocks that would beat the market (Cohen 2002, pp.1). In addition to this initial philosophy, DFA founders believed strongly that the value of sound academic research and the ability of skilled traders to contribute to a fund's profits even when the investment was inherently passive would not only prove to be a successful business model amongst other firms, but would allow DFA to foster a unique quality of investing that singled it out from competitors.

DFA investments counted on market behavior involving the purchasing and holding of small stocks, accounting…… [Read More]

References

Akasie, J. 2011. Who provides the lowest transaction costs? Institutional Investor.

October 2011 Ed.: pp. C3. Web. Retrieved from: ProQuest Database.

Cohen, R. 2002. Dimensional fund advisors, 2002. Harvard Business Review. 9-203-

026. pp. 1-21. Print.
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Contract Dispute Contract Is a Mutual Agreement

Words: 1258 Length: 4 Pages Document Type: Essay Paper #: 96670021

Contract Dispute

Contract is a mutual agreement between at least two persons or parties, aimed at achieving a certain business goal. A contract can be oral or written, although, over the years, written contract has been preferred due to disputes that may arise in the later period of the contract. Often a lawyer is required during the mutual agreement, to ensure that the contract is legal, and serve as a witness of the agreement between the two. Contractual disputes can be during or even after the business process. This often results due to disagreements between the two parties or even misunderstanding.

Procedures in solving contract dispute

Contract Dispute Act is set by the United State that provides guidelines and procedures required whenever a dispute arises, and such disputes resolutions differ depending on the nature of dispute involved. Dispute resolution process involves filing a contract dispute between the two parties and…… [Read More]

References

Bower, G. a. (1998). Basic Behavioural Science. London: DIANE Publishers.

Publictions, W.B. (2008). Public Expenditure Management and Financial Accountability Review. New York: World Bank Publications.

Stalcup, G. (1999). Judgement Fund. London: DIANE publishers.
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Advocacy Group Children's Defense Fund

Words: 662 Length: 2 Pages Document Type: Essay Paper #: 20238311

Mergers and acquisitions also offer the potential for expansion into a new regional market if the old one is super-saturated, if one of the merging or acquired entities is located in a different area of the world.

On paper, it would seem that mergers and acquisitions can often convey value to a company, but two-thirds of most large mergers fail (Mergers and acquisitions: Why they can fail, 2010, Investopedia). One critical question to ask when evaluating if a merger or acquisition is likely to be successful is if the merging organizations have a similar enough corporate culture and standard operating procedures to truly generate such mutual synergy. Worker motivation may decrease if the corporate cultures are inharmonious. When straight-laced Disney acquired the more freewheeling Pixar studios in a friendly takeover, creating a common culture still proved to be a challenge, despite the fact that both entities were animation studios (What…… [Read More]

References

Growing a business. (2010). Tutor2U. Retrieved October 15, 2010 at http://tutor2u.net/business/gcse/organisation_growing_a_business.htm

Mergers and acquisitions: Why they can fail. (2010). Investopedia. Retrieved October

15, 2010 at  http://www.investopedia.com/university/mergers/mergers5.asp 

What is the difference between a merger and a takeover? (2010). Investopedia. Retrieved October 15, 2010 at  http://www.investopedia.com/ask/answers/05/mergervstakeover.asp
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Asset Allocation

Words: 720 Length: 2 Pages Document Type: Essay Paper #: 97788179

Finance

A) I have chosen the Templeton Global Total eturn A, which is a high-performing fund that offers diversification and a global outlook. It is comprised of world bonds and cash. The fund's income is primarily generated from its load, which in this case is 4.25%. This is a front load. The other main cost in a mutual fund is the ME, or management expense ratio (Investopedia, 2014). For this fund, the ME is 1% (Morningstar, 2014).

b) The operating expenses are pretty much the same as for any fund. The fund needs managers, who do research, make investment decisions and administer the fund. The fund is also going to be subject to transaction costs -- while Templeton is big enough to minimize these costs, there are always transaction costs when going into the market.

c) I would say that these fees are fairly reasonable. A bond fund requires less…… [Read More]

References

Investopedia. (2014). Mutual funds: the costs. Investopedia. Retrieved May 20, 2014 from  http://www.investopedia.com/university/mutualfunds/mutualfunds2.asp 

Morningstar. (2014). Templeton Global Total Return A. Morningstar. Retrieved May 20, 2014 from http://quotes.morningstar.com/fund/f?Country=USA&Symbol=TGTRX

SEC.gov (2014). Beginner's guide to asset allocation, diversification and rebalancing. U.S. Securities and Exchange Commission. Retrieved May 20, 2014 from  http://www.sec.gov/investor/pubs/assetallocation.htm
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Advice Soa Financial Planning Purpose of This

Words: 3385 Length: 11 Pages Document Type: Essay Paper #: 31204884

Advice (SOA): Financial Planning

Purpose of this document is to prepare a statement of advice (SOA) on the financial planning for David Smith and Brenda Smith to achieve their financial goals. The advice is to communicate important information to clients in order to make informed decision about their financial portfolios. This document is a Statement of Advice or 'SOA' used to explain my advice, and highlights the important points. Please, be sure to read all sections of the SOA.

Summary of my Advice

I recommend that you sell your shares and reinvest the funds in the managed funds, which will assist you to get a return between $17,000 and $29,000 a year. Moreover, I recommend that you invest 60% of your superannuation in the managed funds. I carefully choose the categories of the managed funds that you could invest your money. Based on my recommendation, you are likely to get…… [Read More]

Reference

Australia Government (2010).Investment Management Industry in Australia. Australian Trade Commission.

Garrett, S.(2008). The Benefits of Mutual Fund Investment in an Uncertain Economy. (Second Edition). Wiley Publication.

InvestSmart.(2013).Top performing Managed Funds. InvestSMART Financial Services Pty Ltd.

Investing (2013).Australia - Government Bonds. Fusion Media Ltd.
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Financial System Reforms Over the

Words: 10927 Length: 30 Pages Document Type: Essay Paper #: 77379478



3.2.3 Portfolio Diversification of Investment in Global Property Markets

ecause the global property markets are affected by globalization and specific country / regional factors, means that the overall amounts of risks will vary, the most notable include: transparency and efficiency. Where, each country / region has different on laws and regulations pertaining to the real estate markets. This means that the risks in a number of different markets will depend upon specific market conditions themselves, reflecting these two factors. To protect themselves against these kinds of risks, many investors will often seek to diversify their portfolio. Diversification is: when you are investing a number of different asset classes in real estate, across a variety of countries / regions. The idea is that if a risk occurs in a specific country or region, the other areas that you are diversified in will protect you against the severity of the declines. For…… [Read More]

Bibliography

2009 A Year of Revival for Property Sector, 2010, Visit Kuwait. Available from: . [30 March 2010].

Barwa Real Estate, 2010, Arabian Business. Available from: . [30 March 2010].

Business Risk, 2010, Invest Words. Available from: [29 March 2010].

Dubai Property Companies Called Merger Off, 2009, Property Wire. Available from: [30 March 2010].
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Asset Classes According to Value

Words: 831 Length: 3 Pages Document Type: Essay Paper #: 36503173

A mutual fund is managed in much the same manner as an individual portfolio. The one key difference is that there are a lot of investors putting their money into a mutual fund. The mutual fund's manager is bound to follow the investment path that would most likely be successful in reaching the mutual fund's goal or objective. Since there are a variety of investors seeking to invest varying dollar amounts, each fund must state explicitly what it is attempting to achieve.

There are as many different mutual funds as there are classifications of investments. Large cap stocks are purchased by large cap mutual funds, small cap stocks by small cap mutual funds.

Mutual funds can be classified as stock or bond funds, fixed income, dividend funds, large, small and medium cap funds, domestic and international funds, growth funds and even foreign market funds. There is usually a mutual fund…… [Read More]

References

Investor Words (2008) Capitalization,  http://www.investorwords.com/714/capitalization.html , Accessed September 7, 2008

Value Line (2008) Stocks covered in the Value Line investment survey, http://www.valueline.com/dow30/, Accessed September 7, 2008
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Fidelity Investments Human Resources

Words: 3039 Length: 10 Pages Document Type: Essay Paper #: 19202715

Fidelity Investments- Human esources

Fidelity Investments

Fidelity Investments- T&D Program

H Transformation strategy- Fidelity Investments

Key Issues identified in interview

Communication

Change management

Technology utilization

Business Case: Context of program application

Mission Metric

Financial Metric

Operational Metric

H redesign

Accountability

Table 1- Implementation and Accountability of L&D program

Figure 2 Business Case ationale for T&D program at Fidelity

Figure 3- H edesign Elements

This H Learning and Development (L&D) program proposed for Fidelity Investments is aimed at addressing the key challenges faced by the firms in its human resource management. There are several instances when H function has contributed to the bottom line of firm as well as pursued an egalitarian culture of society. Present program is spanned over 5 weeks and will be implemented in Americas & Canada region initially. With successful implementation of this L&D program in one region (Americas & Canada), further implementation will be recommended in…… [Read More]

References

Ahadi, H.R. (2004). An examination of the role of organizational enablers in business process reengineering and the impact of information technology. Information Resources Management Journal (IRMJ), 17(4), 1-19.

Bontis, N., & Fitz-Enz, J. (2002). Intellectual capital ROI: a causal map of human capital antecedents and consequents. Journal of Intellectual Capital, 3(3), 223-247.

Deloitte. (2013). 2013 Financial Services Industry Outlook. Retrieved from Deloitte: [ http://public.deloitte.com/media/0146/us_fsi_OutlooksConsolidatedDocument_021813.pdf ]

Fidelity Investments. (N.d.). Our Business. Retrieved from Fidelity Investments: [http://www.fidelity.com/inside-fidelity/about-fidelity/our-businesses]
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Asset Classes the Dow Component

Words: 856 Length: 3 Pages Document Type: Essay Paper #: 63365581

Microsoft has recorded a slight gain over the past three years, but has demonstrated substantial volatility. The company rose dramatically in 2007, fell sharply in 2008 and has recovered strongly since. The mutual fund as had by far the most stable performance. The fund is slightly down over the three-year period and has been down for most of that time. However, for most of 2009 the mutual fund was performing well above Microsoft and the Dow. The Dow is the poorest performer of the three, demonstrating surprising volatility during that period. The Dow is down more than 10% in the past three years.

This performance must also be measured against the expected performance in order to conduct a proper evaluation. Microsoft's outperformance of the market, for example, represents a strong performance relative to the market. The company's stock has a beta of 0.97, meaning that the expectation is that Microsoft…… [Read More]

Works Cited:

Fidelty.com. (2010). Retrieved April 24, 2010 from  http://personal.fidelity.com/products/funds/mfl_frame.shtml?316069400 

MSN Moneycentral: MSFT. (2010). Retrieved April 24, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=MSFT
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Investment and Risk Are the

Words: 1532 Length: 5 Pages Document Type: Essay Paper #: 5284092

After the economic Collapse, precious metals like Gold and Silver have become the safe heaven investment for the investors. Investors know that they will get a high return by investing in these precious metals. The performance of the Gold can be judged from the below mentioned Gold graph.

The red line indicated that the Gold has completed almost a 100% ride in just 3 years because of the intentions of the people to get out their money from other investment option and park in the precious metals. There are risk provisions attached with the investment in these precious metals. Actually the price of the precious metals has been overbought now after the factor of safe heaven investment associated with it. Cautious must be taken by the investors while taking a buying position in the precious metal's investment. Tool like performance indicator of the precious metal will be used by the…… [Read More]

References

Chance, D & Brooks, R (2009), Introduction to Financial Institutions, Prentice Hall Publications

Chisholm, A, (2010), Introduction to Financial Instrument, Pearson Group Publications

Donald, J, (2004), Commodity Prices and Precious Metals Analysis, Oxford University Publications
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Volatile Economic Market it Is

Words: 331 Length: 1 Pages Document Type: Essay Paper #: 4668102

Ideally, mutual funds should represent variety of market sectors throughout the world, to cushion the investor against regional recessions.

Another psychological buffer for the cautious investor is to think of categories of investments, rather than investments in a holistic manner, such as fail-safe investments, long-term growth or retirement money (invested in stocks), and higher risk investments.

This balance will shift with the investor's age, financial profile, and willingness to tolerate uncertainty and speculation. Also, investors may want to consider holding some index funds along with more actively managed mutual funds so as to not miss out on any general market booms, although this does have the downside in that the investor will also experience every market…… [Read More]

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Modern Portfolio Theory

Words: 1875 Length: 6 Pages Document Type: Essay Paper #: 85612644

Theory (MPT) and its role in asset allocation and diversification. The paper reviews arguments in favor of and against MPT, in addition to reviewing how MPT affects portfolio management.

MPT describes a theory on how risk-averse investors can build portfolios that optimize or maximize expected return based on a given level of market risk, while emphasizing that risk is an inherent factor of higher reward. MPT posits that it is possible to construct an "efficient frontier" of optimal portfolios that offer the maximum possible expected return for a given level of risk (Modern portfolio theory, 2011).

Modern Portfolio Theory

Typically, an investor looking for the ideal investment, would choose one whose attributes included high returns coupled with low risk. The ideal investment probably does not exist, but the search for it has caused financial managers and investment analysts to spend time to develop methods and strategies, many of which are…… [Read More]

Reference List

Bernstein, W.J. (1996). The expected return of precious metals equity. Retrieved May 31, 2011 from  http://www.efficientfrontier.com/ef/197/preci197.htm 

McClure, B. (2011). Modern portfolio theory: why it's still hip. Investopedia Web site. Retrieved May 31, 2011 from http://www.investopedia.com/articles/06/MPT.asp

Modern portfolio theory: Dynamic diversification for today's investor. Vision Financial Markets. Retrieved May 31, 2011 from http://www.usafutures.com/modernportfoliotheoryinvesting.pdf

Modern portfolio theory -- MPT. (2011). Investopedia Web site. Retrieved May 31, 2011 from  http://www.investopedia.com/terms/m/modernportfoliotheory.asp
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International Financial Markets and Institutions Throughout the

Words: 2559 Length: 8 Pages Document Type: Essay Paper #: 45284927

International Financial Markets and Institutions:

Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…… [Read More]

References:

Accounting Education (2010), International Capital Market, Accounting Education, viewed 7

June 2012,

Australian Securities Exchange (n.d.), Absolute Return Funds, Australian Securities Exchange,

viewed 7 June 2012,
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Fidelity Five Holdings of Fidelity

Words: 477 Length: 1 Pages Document Type: Essay Paper #: 4625094

Firms under the guidance of individual investors are more likely to take a conservative approach to ethics, since the shareholders may take a greater interest in this 'human' side to investing than a large firm like Fidelity. Also, very simply, if Fidelity or one of the companies in which it concentrates a large share of its ownership experiences financial difficulties is in trouble, then Fidelity, investors in Fidelity mutual funds, and the economy as a whole, can all be harmed far more than if individual investors selected from a wider range of businesses.

On a larger scale, such consolidation also means that there may be less diversity in investing in new companies in general, given that Fidelity likes to concentrate its holdings amongst several large sectors of the economy, in major and well-established firms. Individual investors have less of an opportunity in this investment climate to extend their influence to…… [Read More]

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Accounting and Financial Statements Non-Profit

Words: 824 Length: 2 Pages Document Type: Essay Paper #: 81533805

As a customer, I will expect quality services from BDO.

Mutual funds portfolio turnover is one of the easily explained investment qualities for investors. While expressed as percentages, it shows the portion of securities in the fund's portfolio of those sold and bought in a year. All these information is found in the reports and financial statements we present. When the lower percentage figure is reported, it will equate to a long portfolio-holding period. For example, if the turnover is 10% it means that the portfolio would be reconstituted after five years. On the other hand, when the turnover is 100% the portfolio will be reconstituted in one year. I will select one with 100% turnover because it can be reconstituted in a period of only one year (Feldman & Libman, 2011, p. 43). This will be economical and profitable instead of waiting for a long period to be reconstituted.…… [Read More]

References

Feldman, M. & Libman, a. (2011) Crash Course in Accounting and Financial Statement Analysis. Brooklyn, NY: John Wiley & Sons.

Epstein, L. (2012). The Business Owner's Guide to Reading and Understanding Financial Statements: How to Budget, Forecast, and Monitor Cash Flow for Better Decision Making. Brooklyn, NY: John Wiley & Sons
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Economics of Banking General Economic

Words: 737 Length: 3 Pages Document Type: Essay Paper #: 93021384

e. no standardization) b) Diamonds: good medium of exchange

Peaches: perishable, differences in quality (i.e. no standardization) d) Grade a Honey: differences in quality (i.e. no standardization), difficult to transport e) Ice in a warm climate: perishable, difficult to store a. Over the long run, what is the primary determinant of the price level? Supply and demand, with price acting as an equilibrator b. Over the long run, what is the primary determinant of inflation?

The supply of money as compared to changes in productivity.

c. How is inflation related to the nominal interest rate?

Expectations of future inflation are one of the key factors in determining the nominal interest rate, the other being the 'core' interest rate, or the inflation-free level at which one is willing to lend money (which differs according to the issuer and associated risk premium).

4. Describe each of the following financial institutions. If it…… [Read More]

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Bank for International Settlements 2010

Words: 2522 Length: 7 Pages Document Type: Essay Paper #: 37657704

The increase in profits (at certain points) highlights the overall risks vs. rewards, as they can see substantial growth of 5% each year. Moreover, the performance of various strategies used in management of hedge funds experienced a greater feat, despite having less asset classes to choose from.

Over the years, the hedge fund industry has shown consistent growth and increase in its regulatory issues. This is because managers are using strategies that: increase the overall amounts of risk, while offering the possibility of greater financial rewards. As a result, the odds improve that investors could experience significant losses in these areas (which increases the overall amounts of regulatory scrutiny).

Hedge funds will experience more changes that will lessen its variance in comparison with mutual funds. Where, it will determine its investors and techniques of management without being greatly influenced by: institutionalization or regulation of the finance industry. In 2005, Ibbotson…… [Read More]

Bibliography

Hedge and Pension Funds, 2011.

Ackermann, C, McEnally R. & Ravenscraft, D 1999, "The performance of hedge funds: Risk, return and incentives." Journal of Finance, 54 (June), pp. 833-874.

Adrian, T 2007, "Measuring risk in the hedge fund sector," Current Issues in Economics and Finance, 13, Federal

Reserve Bank of New York, pp. 1 -- 7.
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Portfolio Management Project

Words: 4930 Length: 17 Pages Document Type: Essay Paper #: 69381068

Stock

Portfolio Management Project

Selected 10 companies

Company

Symbol

purchase date purchase price

Apple, Inc.

APPL

Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth

Brocade

BCD

Communications Systems Inc.

Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth

Joy Global Inc.

JOYG

Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth

Ctrip.com

CTP

Industry/Sector: Consumer Services -- Investment Style: International

Gerdau SA

GGB

Industry/Sector: Steal & Iron -- Investment Style: International

Gol Linhas

GOL

Aereas Inteligentes SA

Industry/Sector: egional Airline -- Investment Style: International

Green Mountain

GMC

10/21/2009

Coffee oasters Inc.

Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth

io Tinto PLC

TP

10/21 / 2009

Industry/Sector: Steal & Iron -- Investment Style: International

Vale SA

VALE

10/21/09

26.90

Industry/Sector: Steal & Iron -- Investment Style: International

Wendys/Arbys

WEN

10/21/09

4.08

Group Inc.

Industry/Sector: estaurants -- Investment Style: Small Growth

Introduction

Investing today is about taking advantage of growth from a broader…… [Read More]

Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks. Its Application Delivery Controller segment offers OSI Layer 4-7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, as well as provides file area network products and associated management solutions. The company's Global Services segment includes break/fix maintenance, extended warranty, installation, consulting, network management, related software maintenance, and telecommunications services that assist customers in designing, implementing, deploying, and managing networking solutions, as well as post-contract customer support and customer support services. It offers its products and services to end-user customers directly and through various distribution partners, including original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, California. (Yahoo Finance)

Industry: Data Storage Devices

BRCD SECTOR / INDUSTRY MEMBERSHIP

Sector:

Technology
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Risk and Return

Words: 1828 Length: 6 Pages Document Type: Essay Paper #: 36596162

risk and return for an investment portfolio that includes five asset categories: stocks, bonds, mutual funds, options, and precious metals. The purpose of diversified portfolio investment is to maximize portfolio expected return for a given level of risk, or to minimize risk for a specific level of expected return. This paper reviews mathematical formulae for modeling risk and return which provide a rationale for investment strategies and portfolio management. The paper also discusses risk and return objectives and expectations, along with investment risk profiles.

Risk vs. Return Measurement

In an ideal world, the typical investor would select investments whose attributes include high returns coupled with low risk. In reality, there are few of these kinds of investments available, consequently financial managers have gone to great lengths to develop methods and strategies that allow them to come as close as possible to selecting the ideal investment. One such financial theory for…… [Read More]

Piazza, J. (n.d.). Objectives and risk. Sensible Investment strategies Web site. Retrieved May 26, 2011 from  http://www.seninvest.com/objectives.htm 

Risk Measures. (2011). Investopedia Web site. Retrieved May 26, 2011 from  http://www.investopedia.com/terms/r/riskmeasures.asp 

Wan, S.P. (n.d.). Modern portfolio theory. Investment Funds Advisors Web site. Retrieved May 26, 2011 from http://www.ifa.com/media/images/pdf%20files/mpttextbook.pdf
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Portfolio Strategy

Words: 1003 Length: 3 Pages Document Type: Essay Paper #: 45658777

Strategy

Over the last several years, the markets have faced a tremendous amount of volatility. Part of the reason for this, is because the global financial crisis and subsequent recession caused the Dow Jones Industrial Average to decline to 6,547. Then, it would climb over 68% to cross above 12,000. This is important, because it is showing how there are tremendous opportunities for investors. However, in order to attain above average returns requires that you are using a strategy that is: embracing growth and minimizing risks as much as possible. To achieve this objective requires having: an asset allocation strategy that will incorporate balance and value. Once this takes place, it will provide the greatest insights as to how we should structure a portfolio that will maximize the total return investors are receiving in the year ahead.

The Portfolio Philosophy

The basic strategy that we will be using is to…… [Read More]

Bibliography

The China Fund. (2011). Yahoo Finance. Retrieved from:   http://finance.yahoo.com /q/ks?s=CHN+Key+Statistics 

Fidelity U.S. Treasury Money Market Fund. (2011). Fidelity. Retrieved from: http://fundresearch.fidelity.com/mutual-funds/summary/31617H300

Sander, P. (2011). The 100 Best Stocks. Adams, MA: Avon Media.

Standard and Poor's. (2010). Standard and Poor's 500 Guide. New York, NY: McGraw Hill.
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Personal Statement Taking a Risk

Words: 659 Length: 2 Pages Document Type: Essay Paper #: 46992226

As a part of my work, I have conducted on-going analysis and monitoring of the risks involved in a variety of investment funds. I remained at the cutting edge of market research, for I must be aware of the subtlest differences amongst different funds. This invaluable work experience has not only steeled my stomach to risk, but has shown me the importance of mathematics and programming in the financial field. Quantitative data, properly studied, remains the most invaluable tool in risk management today.

I have also already begun my initial creative work in the field. Recently, I developed my first quantitative model at work, an original program using Excel to generate risk ratings for different funds, based on statis data. Through my employment as well I have broadened my knowledge base about derivates in the capital markets products, through direct involvement in transactions as well as self-study conducted at in-house…… [Read More]

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Financial Planning

Words: 582 Length: 2 Pages Document Type: Essay Paper #: 40411742

Finance

For my portfolio, obviously there are certain stipulations that limit my choices, namely the $10,000, which is a pretty big constraint. I thought I would start with the shares. I went with Brocade Communication Systems, which trades as BCD on Nasdaq. This company makes and sells networking hardware and storage solutions. The current market price is $9.72 (MSN Moneycentral, 2014). I will be buying 200 shares, which gives us a price of $1,944.

The option is going to be call options on Starbucks. The expiry will be October 18, 2014. The strike price is $80, which has an ask of $1.25. The current price of Starbucks is $70.15 so the time value is presently $1.25 (MSN Moneycentral, 2014). The total cost of this is going to be 1.25 * 500 = $625.

The time horizon of this portfolio is long, since this is for my retirement. Therefore I can…… [Read More]

References

Morningstar. (2014). Fidelity Growth Company. Retrieved April 21, 2014 from http://quotes.morningstar.com/fund/f?region=USA&t=FDGRX

MSN Moneycentral: Starbucks. Retrieved April 21, 2014 from http://investing.money.msn.com/investments/equity-options?symbol=U.S.:SBUX&optionsdate=10/18/2014

MSN Moneycentral: Brocade Communication Systems. Retrieved April 21, 2014 from http://investing.money.msn.com/investments/stock-price?symbol=brcd&ocid=qbeb
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Diversification Risk and Transactions Costs

Words: 1009 Length: 4 Pages Document Type: Essay Paper #: 82336325

Does having two companies' stock increase the expected value of your portfolio? If not, then why is diversification a good thing in this example?

Having the portfolio which consists of two equal stocks doesn't increase portfolio's value, which will remain the same ($105,000), yet it decreases the risk of winding with nothing, as the probability of winding with nothing in case portfolio consists of two companies' stocks is twice smaller (0.25 against 0.5) and the probability of favorable outcome is 0.75 compared to 0.5 for a one company stock portfolio.

A d) Calculate the probability that you will end up with nothing, and the probability that you will end up with $210,000, for each of the following cases: splitting your money evenly between 3 stocks, between 5 stocks, and between 10 stocks. What is happening to the probability of "in-between" outcomes as portfolio diversification increases in this example (no exact…… [Read More]

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Charles Merrill Visionary Leader and

Words: 1098 Length: 3 Pages Document Type: Essay Paper #: 9197517

As a result: "In 1940, just 16% of Americans invested in stocks. Now over 50% do -- thanks to the explosion of 401(k) plans, the wide availability of mutual funds, lower trading costs, and accessible research." would call Charles Merrill a leader rather than a manager, although it is likely that he was a strong manager of his organization as well. But he was a leader because he led his industry in a whole new direction, and changed that industry permanently in the process. According to Leadership vs. management (April 14, 2004), Charles Merrill was not just a leader of an organization; he was a leader of change within his entire industry:

www.1000ventures.comLeadership is about getting people to abandon their old habits and achieve new things, and therefore largely about change - about inspiring, helping, and sometimes enforcing change in people. "While there can be effective management absent ideas, there…… [Read More]

References

Cohen, W. (2003). Got vision? The stuff of heroes newsletter. 12(1) Retrieved April 14,2004, at  http://www.stuffofheroes.com/Vol.%201,%20No.%2012.htm 

Leadership vs. management. (April 14, 2004). The business e-coach. Retrieved April 22, 2005, at  http://www.1000ventures.com/business_guide/crosscuttings/leadership_vs_mgmt.html " / crosscuttings/leadership_vs_mgmt.html.
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Ethical Problems the Director of

Words: 479 Length: 2 Pages Document Type: Essay Paper #: 14630935

Offering tickets and a meal to the selection committee members is similarly questionable. Even if the committee members do not feel that the tickets and meal will influence them, it is better to avoid accusations from rejected vendors that the selection was not undertaken objectively and in compliance with policy.

Yet another vendor in contention has sent a $25 sympathy bouquet of flowers to you on the recent demise of your great uncle.

This is not an ethical violation. The benefit to the recipient was minimal in value. Also, it was clearly given not to curry favor but to express condolences. The intention does not suggest an attempt to exert influence.

Your stock broker is recommending the purchase of a technology mutual fund that contains stock belonging to several of the vendors in contention.

This situation contains a potential ethical violation, given that the member of the committee could benefit…… [Read More]

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Skill Hypothesis the Regulation and

Words: 1756 Length: 6 Pages Document Type: Essay Paper #: 62165828

There is a risk of loss as a result of nationalization).Transfer risk ( when a foreign authority restricts the transfer and delivery of foreign currencies), settlement risks, legal risks, market risks as well as liquidity risks.

Conclusion

Hedge funds are therefore not suitable for investors because they effectively underperform other hedge funds. This fact that there are tighter constraints, stricter regulations as well as lower incentives should deter retail investors from investing in hedge funds. The disadvantages and risks associated with hedge funds makes them unsuitable investment vehicles for retail investors.

eferences

Agarwal, V., Nicole M. Boyson.,NM and Naik, N (2007)Hedge funds for retail investors -- An examination of hedged mutual funds

C o n n o r, Gre g o ry and Mason Wo o (2003), "An Introduction to Hedge Funds," working p a p e r, Financial Markets Group, London School of Economics.

Cottier, P (1996) 'Hedge Funds…… [Read More]

References

Agarwal, V., Nicole M. Boyson.,NM and Naik, N (2007)Hedge funds for retail investors -- An examination of hedged mutual funds

C o n n o r, Gre g o ry and Mason Wo o (2003), "An Introduction to Hedge Funds," working p a p e r, Financial Markets Group, London School of Economics.

Cottier, P (1996) 'Hedge Funds and Managed Futures - Performance, Risks, Strategies and Use in Investment

Portfolios,' Thesis, http://www.aima.org/aimasite/indexfrm.h
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Investment and Money Management

Words: 2952 Length: 10 Pages Document Type: Essay Paper #: 44940978

Investments are the assets or items purchased with the anticipation to generate the income in the future. In the economic sense, investments refer to the goods and services purchased and not consumed today for the purpose of generating wealth in the future. Similarly, going to a university or building a factory to produce goods and services are the examples of investments. Within a financial environment, investors purchase assets with the hope that they will appreciate in the future, thus, creating wealth for the investors. Examples of investment in the financial circle include purchasing of stocks, or real estate property with the anticipation that they will appreciate in the future. Despite the benefits that can be derived from the investment purpose, the investment is not something an individual can take lightly. Investors are to implement a careful planning to reap the benefits of an investment. Typically, an investor can lose his…… [Read More]

Reference

Costa, D. (2011). The Portable Private Banker Investing Efficiently through Mutual Funds and ETFs. UK. CreateSpace Independent Publishing Platform.

Morningstar (2014). Exchange Traded Funds, Morningstar website. Avaliable from:

 http://news.morningstar.com/etf/Lists/ETFReturns.html 

Morningstar (2014). ProShares Ultra Nasdaq Biotechnology BIB, Morningstar website. Avaliable from: http://performance.morningstar.com/funds/etf/total-returns.action?t=BIB&region=usa&culture=en-U.S.
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Portfolio Construction and Money Management

Words: 2916 Length: 10 Pages Document Type: Essay Paper #: 22021448

financial assets in order to recommend the appropriate investment vehicle for the client. Analysis of different investment vehicles shows that ETFs are the best investment option for our clients. The ETFs are the basket of securities that combine stocks, bonds, cash, commodities and other securities. The report diversifies our investment options choosing the stocks, bonds and cash from different industries. Based on the historical data, our average annual returns are 38% revealing EU 32,997 as our annual returns from our initial investment capital of EU 100,000. After 3 years, the net worth of our investor will be EU 457,901, which include the cumulative returns and the capital. However, the net worth of our investor will be EU 5.38 Million after 10 years. The report also carries out the sensitive analysis on the investment option assuming that our investment choice is affected by the macroeconomic forces. The report reduces our annual…… [Read More]

References

Costa, D. (2011). The Portable Private Banker Investing Efficiently through Mutual Funds and ETFs. UK. CreateSpace Independent Publishing Platform.

Costa, D. (2011). The Triumph of Intelligence. UK. CreateSpace Independent Publishing Platform.

David White & Associates (2011).The Benefits of Diversification. USA.

Justice, P. (2013). ETF Investor Recommendations for commonsense ETF investing. Morningstar Investment Report .
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Life Insurance and Derivatives

Words: 2389 Length: 5 Pages Document Type: Essay Paper #: 34465861

conventional wisdom has always stated that hedging strategies and life insurance are ill-matched partners. The belief has always been that the philosophical motivation behind employing one is diametrically opposed to that of the other. Insurance companies have traditionally shunned the use of derivatives as a hedging strategy because the insurance industry is all about risk management and hedging instruments required too much specialized knowledge and too many risks to be utilized as suitable strategies, especially when there were conventional investments that could guarantee a significant long-term return one's capital investment. During prosperous -- or at least non-volatile times -- very few investors or managers questioned this way of thinking. However, ultimately, whether one is talking about life insurance, pensions or playing the market, it's all about winning, and over the last few years as the market made a mockery of mutual funds and other traditional investment tools, the only ones…… [Read More]

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New Regulatory Framework of Financial

Words: 3792 Length: 12 Pages Document Type: Essay Paper #: 69334748

" (Crawford, 2011)

These comments are showing how Wellstone understood the risk that this would pose to the financial system. In eight years after making this speech, the federal government would be directly bailing out firms that were too big to fail. This is indicating how the repeal of the Glass Steagall Act allowed financial institutions to engage in excessive amounts of risk taking. It is at this point that they took on large amounts of debt and had no accountability. (Crawford, 2011)

The information from this source is useful in showing how the repeal of certain laws helped to create situations which allowed for an atmosphere of deregulation. This set the stage for excessive amounts of risk taking with the liquid assets of the firm. When this happened, many institutions began to engage in activities that were believed to be safe. However, they were considered to be speculative and…… [Read More]

References

More than 1,500 Private Fund Advisors. (2012). SEC. Retrieved from: http://www.sec.gov/news/press/2012/2012-214.htm

What is Qualitative Research. (2012), QSR International. Retrieved from: http://www.qsrinternational.com/what-is-qualitative-research.aspx

Crawford, C. (2011). The Repeal of the Glass Steagall Act. Journal of Business and Economic Research, 9 (1), 20 -- 34.

Erkens, D. (2012). Corporate Governance. UVA. Retrieved from: http://www.darden.virginia.edu/web/uploadedFiles/Darden/Faculty_Research/Directory/Full_time/EHM_CorporateGovernanceCrisis_2012_01_04%20JCF.pdf
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Individual Financial Contingency Planning

Words: 1759 Length: 5 Pages Document Type: Essay Paper #: 7279253

Individual Financial Contingency Planning

Temporary Assistance is the temporary help for the needy women, men, and children. If one is cannot find a job or the job is not providing enough, and unable to work, temporary assistance ill help in paying the expenses. There are two types of Temporary Assistance programs: Family Assistance (FA) and Safety Net Assistance (SNA). Family Assistance is the provision of cash assistance to the needy families, which include minor children living with their parents or caretaker relatives. According to Family Assistance, qualified adults are limited to receive the assistance for a period of sixty months in their lifetime (Gitman & Joehnk, 2007, p. 21). Once this time has expired, not all the family members are legible to receive family assistance and other benefits. Parents and other adults who have been receiving Family Assistance must comply with the requirements of the fed in order to receive…… [Read More]

References

Arvai, Z. & Driessen, K. (2009). Regional Financial Interlinkages and Financial Contagion within Europe. International Monetary Fund.

Cumming, D. (2012). The Oxford Handbook of Entrepreneurial Finance. New York: Oxford University Press.

Gitman, L. & Joehnk, M. (2007). Personal Financial Planning. New York: Cengage Learning.

Jackson, P. (2006). Nonprofit Risk Management & Contingency Planning: Done in a Day Strategies. Washington: John Wiley & Sons
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International Business Identify the Risks

Words: 2009 Length: 6 Pages Document Type: Essay Paper #: 9312730



Another reason why corporations choose to hold cash balances in a centralized repository is that the variety of accounts can be better managed as a mutual fund more complex investment structure than would be the case if the subsidiary alone managed the funds. A greater quality of information is available for example in the leading financial centers globally that would otherwise not be the case in more remote regions, making it possible to make more informed and correct decisions (Mitsos, 1997). The accuracy, efficiency and speed of decision-making based on more efficient use of information has led to more advanced forms of cash management than would have been the case on a per-subsidiary level (Fresard, Salva, 2010). Lastly, by having a centralized depository of cash for all subsidiaries, firms can hold less accumulated total cash, freeing up financial resources for other investments (Fresard, Salva, 2010). Companies become more efficient at…… [Read More]

References

Elliott, Graham, & Bewley, Ronald. (1994). The transmission of monetary policy: The relationship between centralized depositories and Monetary policy. Economic Record, 70(208), 19.

Fresard, L., & Salva, C.. (2010). The value of excess cash and corporate governance: Evidence from U.S. cross-listings. Journal of Financial Economics, 98(2), 359.

Hill, C.W.L. (2011). International business: Competing in the global marketplace (8th ed.). New York, NY: McGraw-Hill/Irwin.

Nicholas Mitsos. (1997, November). Virtual Group Treasury. TMA Journal, 17(6), 24-30.
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Pay Back Period Is the Length of

Words: 1370 Length: 4 Pages Document Type: Essay Paper #: 90396093

pay back period" is the length of time that is required to cover the cost of an investment. I would use this in order to make a good financial decision.

The calculation that I would do is as follows:

"http://i.investopedia.com/inv/dictionary/terms/paybackperiod.gif" d?

For instance, if a project costs $100,000 and is expected to return $20,000 annually, the payback period will be $100,000 / $20,000, or, in other words, $20 per 5 years.

The better investment is the one that has the shorter pay back period.(Investopeida)

Another tool that I would use to measure the time value of money to assess long-term projects is Net present value (NPV). Businesses use it to measure the value of a time series of cash flows both incoming and outgoing. For instance, when all types of cash flows are incoming (such as bonds or coupons), and the only cash outflow is the purchase price, the NPV…… [Read More]

Sources

About.com Debt and Equity Financing

http://bizfinance.about.com/od/generalinformatio1/a/debtequityfin.htm

Benzinga. Com Understanding Stocks: The Concept of Betahttp://www.benzinga.com/general/psychology/12/01/2300328/understanding-stocks-the-concept-of-beta

Cuckke.com. Systematic risks and unsystematic risks.
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Shuffle Master Is a Little Known Equity

Words: 1404 Length: 5 Pages Document Type: Essay Paper #: 26545551

Shuffle master is a little known equity, as evidenced by the fact that it is 95% owned by institutional investors such as pension funds and mutual funds. It is what would be considered a small cap stock, with a capitalization of a mere 500 million dollars. The company is unique in that it maintains almost no debt and maintains no long-term debt. With a beta of.659, Shuffle Master has less than half the undifferentiable risk that its market peers do, but more than the industry average of.54. Shuffle Master's P/E is higher than average at slightly more than 32. The industry average is between 25 and 26. According to the most recent income statement, 12-month trailing revenue growth totals 17%. This is exceeded by earnings growth, which at 20.9% reflects both decreasing expenses and the non-existence of interest expenses.

Shuffle Master's profit margin, at 25.82%, is quite high, as is…… [Read More]

Bibliography

Shuffle Maker, 10-Q SEC filings for Q4, 2002 and Q1, Q2, and Q2, 2003.

Finance.yahoo.com
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Extended Definition Financial Advisor Has

Words: 653 Length: 2 Pages Document Type: Essay Paper #: 63007979

It is therefore possible that these professionals will need to investigate all levels of the customer's needs. Issues such as hopes, dreams and desires are for example taken into account together with more concrete issues such as taxes, insurance and retirement. These are all considered together in terms of the customer's stated needs. Because this is such a complicated and involved process, many financial advisors limit their expertise to provide optimal advice on only one aspect of financial planning or investing, while others attempt to be as global as possible. The customer with singular or simplified financial needs may make use of the former, while those with several different assets and investments may make use of the latter.

What type of financial advisor is chosen therefore depends greatly upon the specific needs and perceived financial competence of the customer. A customer who is not very informed regarding the financial world…… [Read More]

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Financial Ratios There Are a Number of

Words: 1342 Length: 5 Pages Document Type: Essay Paper #: 62679965

Financial Ratios

There are a number of financial ratios that will be valuable to a small business person. A small business is often concerned with cash flow, so ratios that are the most concern fall into three categories -- liquidity, profitability and efficiency. Liquidity ratios measure the ability of the company to meet its upcoming financial obligations. These ratios are important for ensuring that there is enough cash on hand to pay the bills. The profitability ratios are important because the business will be more successful if it is able to manage its margins. Efficiency ratios are concerned with how fast items like inventory or accounts receivable are turned over. These ratios are a direct reflection of the company's working capital, and improvements in these ratios improve the working capital flow.

These ratios are going to be slightly different from those that a large corporation values. The large corporation actually…… [Read More]

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Capitol Crimes in the United States the

Words: 1396 Length: 5 Pages Document Type: Essay Paper #: 18414501

Capitol Crimes

In the United States, the government has had to deal with accusations of corruption and duplicity from the beginning of the nation's creation. Unfortunately, many of these accusations have been found to be true and those in positions of political power have been guilty of abusing their roles and of committing illegal acts while purportedly representing the people. In recent years, the corruption has become even more blatant and obvious. Instead of properly representing their constituents, elected officials are becoming more concerned with their political careers and with increasing their power and expanding their bank accounts. This is completely antithetical to the original purpose of the representational government system that the Founding Fathers instituted (Barbour 20). In Bill Moyer's documentary Capitol Crimes, the filmmakers explore just how bad the issue of political corruption has become and how it affects everyone who is led by that corrupt government. Examining…… [Read More]

Works Cited:

Barbour, Christine, Gerald C. Wright, Matthew J. Streb, and Michael R. Wolf. Keeping the Republic: Power and Citizenship in American Politics. Washington, DC: CQ, 2006. Print.

Bill Moyers: Capitol Crimes. Acorn Media, 2012. DVD.

Grimaldi, James and Schmidt, Susan. "Report Says Nonprofit Sold Influence to Abramoff."

Washington Post. Oct. 13, 2006. Print.
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Investor Satisfaction Case a Business Report Investor

Words: 2047 Length: 6 Pages Document Type: Essay Paper #: 54838210

Investor Satisfaction Case

A Business eport

INVESTO SATISFACTION EPOT

As requested, here are my findings on the investor satisfaction report as collated by our analysis department. Our investment brokerage firm is advised to follow up on the results to improve brokerage performance based on type of investment product purchased.

100 clients were randomly selected and asked a series of questions, the criteria being they must have purchased shares in any one of the funds. Investment counselors personally ask the client to rate their level of satisfaction with the product as high medium or low.

30% of our investors have invested in bond fund, 30% in the stock fund and 40% have invested in the tax-deferred annuity. We can deduce from the total population data that 40% of all clients displayed high satisfaction, 40% displayed medium satisfaction and 20% displayed low satisfaction (Table 2.17).

Stock fund clients report high satisfaction generally…… [Read More]

References

C. Blake. "The Performance of Bond Mutual Funds." Journal of Business 66 (2005), 371403.

J. Clements. "Risk-Takers Believe Leveraged Muni Funds May Provide Quick Score if Interest Rates Fall." Wall Street Journal (September 26, 2004), C2.

S. Collins and P. Mack. "The Optimal Amount of Assets under Management in the Mutual Fund Industry." Financial Analysts Journal 53 (September / October 2007), 67-73.

K. Damato. "Grenfell Funds' Woes Aren't Uncommon." Wall Street Journal (September 5, 1996), C1.
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One Person's View on the Ethics in Financial Management

Words: 3466 Length: 11 Pages Document Type: Essay Paper #: 56705101

conflict of interest is at the core of nearly every ethical dilemma. A conflict of interest, simply put, is a situation in which the decision maker has two or more competing interests. Market timing, late trading, insider trading, illegal trading, fraud, partial disclosure, non-disclosure...the manifestation of conflicts of interest is seemingly endless. The business landscape today is a minefield of ethical disasters, some of which have already occurred, some of which wait quietly in the shadows to erupt into scandal.

In the summer of 2002, when Congress was attempting to decide how to clean up the shady financial practices of Corporate America, mutual fund company lobbyists convinced lawmakers to exempt their area of the financial services industry. As of September 2003, when the Attorney General for New York State, Eliot Spitzer, revealed his "stunning" charges of illegal trading in mutual funds, this industry has occupied center stage in the spotlight…… [Read More]

References

Anand, V. (May 2003). Mutual Funds Face Soft-Dollar Disclosure Rule. Pensions & Investments, 31 (10), 1-2.

Anand, V. (Dec 2003). Spitzer: 'I Spy DC Fees'. Pensions & Investments, 31 (25), 2-3.

Borrus, A. & Dwyer, P. (Dec 2003). The Critical Battle For Reform. Business Week, 3860, 30- 32.

Coffin, B. (Feb 2004). Mutual Fund Industry Under Scrutiny. Risk Management, 51(2), 37.